This document summarizes the key points from a presentation on the social criticisms of marketing and the impact of marketing on individuals and society. It discusses complaints about marketing such as high costs, deceptive practices, and false wants created by advertising. It also covers responses to these criticisms regarding benefits to consumers from marketing activities. Additionally, it defines concepts like consumerism, environmentalism, and socially responsible marketing. The role of ethics in marketing and how marketing can impact other businesses are also addressed.

1. By : Gihan aboueleish

2. After this presentation
you should be able to:
1. Identify the major
social criticisms of
marketing
2. Define consumerism
and environmentalism
and explain how they
affect marketing
strategies
3. Describe the
principles of socially
responsible marketing
4. Explain the role of
ethics in marketing20-2
Marketing Impact on people - Gihan aboueleish

3. Marketing’s Impact on
Individuals
• High cost of
distribution
• High advertising and
promotion costs
• Excessive markups
• Deceptive practices
20-4
Marketing Impact on people - Gihan aboueleish

4. Complaint:
Intermediaries mark up
prices beyond their
value due to
inefficiencies and
unnecessary or
duplicative services
Response:
Markups reflect the cost of
the services that
consumers expect
• Convenience
• Larger stores and
assortments
• More service
• Return privileges
20-5
Marketing’s Impact on Individual Consumers
High Cost of Distribution
Marketing Impact on people - Gihan aboueleish

5. Complaint:
Prices are inflated to
absorb advertising
and sales promotion
costs, and
packaging only adds
to the
psychological, not
functional, value of
the product
Response:
Advertising does add to
product cost but also
to product value by
informing potential
customers of the
availability and
merits of the product
20-6
Marketing’s Impact on Individual Consumers
High Advertising and Promotion costs
Marketing Impact on people - Gihan aboueleish

6. Complaint:
Companies mark up
products
excessively
Response:
Most businesses try to
deal fairly with
consumers because
they want to build
relationships and
repeat business
20-7
Marketing’s Impact on Individual Consumers
Excessive Markups
Marketing Impact on people - Gihan aboueleish

7. Marketing’s Impact on
Individual Consumers
Deceptive Practices
Complaint: Companies use
deceptive practices that lead
customers to believe they
will get more value than
they actually do. These
practices fall into three
categories:
• Deceptive pricing
• Deceptive promotion
• Deceptive packaging
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Marketing Impact on people - Gihan aboueleish

8. Marketing’s Impact on
Individual Consumers
Deceptive Practices
Deceptive pricing includes practices
such as falsely advertising
“factory” or “wholesale” prices or
a large price reduction from a
phony high retail list price
Deceptive promotion includes
practices such as misrepresenting
the product’s features or
performance or luring the
customer to the store for a
bargain that is out of stock
Deceptive packaging includes
exaggerating packaging contents
through subtle design, using
misleading labeling or describing
size in misleading terms
20-9
Marketing Impact on people - Gihan aboueleish

9. Marketing’s Impact on Individual
Consumers
Deceptive Practices
Legislation to protect consumer from deceptive
practices
• Wheeler-Lea Act—gives the Federal Trade
Commission (FTC) power to regulate “unfair
or deceptive acts or practices”
Is it deception or alluring or puffery that is just an
exaggeration for effect?
• Products that are harmful
• Products that provide little benefit
• Products that are not made well
20-10
Marketing Impact on people - Gihan aboueleish

10. Complaint:
Salespeople use high-
pressure selling that
persuades people to
buy goods they had
no intention of
buying
Response:
Most selling involves
building long-term
relationships and
valued customers.
High pressure or
deceptive selling can
damage these
relationships.
20-11
Marketing’s Impact on Individual Consumers
Deceptive Practices - High-Pressure Selling
Marketing Impact on people - Gihan aboueleish

11. Complaint:
Products have poor
quality, provide
little benefit, and
can be harmful
Response:
Today’s marketers know that
customer-driven quality
results in customer value
and satisfaction that
creates profitable
customer relationships.
There is no value in
marketing shoddy,
harmful, or unsafe
products.
20-12
Marketing’s Impact on Individual Consumers
Deceptive Practices- Harmful, or Unsafe Products
Marketing Impact on people - Gihan aboueleish

12. Complaint:
Producers follow a program
of planned
obsolescence, causing
their products to
become obsolete before
they actually need
replacement. Producers
also continually change
consumers’ concepts of
acceptable styles to
encourage more and
earlier buying.
Response:
Planned obsolescence is
really the result of
competitive market forces
leading to ever-improving
goods and services.
Marketers know that
customers like style
changes and want the
latest innovations even if
older models still work.
20-13
Marketing’s Impact on Individual Consumers
Deceptive Practices - Planned Obsolescence
Marketing Impact on people - Gihan aboueleish

13. Complaint:
American marketers
serve disadvantaged
customers poorly.
Some retail
companies
“redline” poor
neighborhoods and
avoid placing stores
there.
Response:
Some marketers
profitably target
these customers, and
the FTC has taken
action against
marketers that do
advertise false
values, wrongfully
deny service, or
charge disadvantaged
customers too much.
20-14
Marketing’s Impact on Individual Consumers
Deceptive Practices- Poor Service to Disadvantaged Consumers
Marketing Impact on people - Gihan aboueleish

14. Complaint:
The marketing system urges
too much interest in
material possessions.
People are judged by
what they own rather
than who they are,
creating false wants
that benefit industry
more than they benefit
consumers.
Response:
People do have strong
defenses against
advertising an other
marketing tools.
Marketers are most
effective when they
appeal to existing wants
rather than creating new
ones. The high failure rate
of new products shows
that companies cannot
control demand.
20-15
Marketing’s Impact on Society as a Whole
False Wants and Too Much Materialism
Marketing Impact on people - Gihan aboueleish

15. Complaint:
Businesses oversell private
goods at the expense of
public goods and
require more public
goods to support them
Response:
There needs to be a balance
between private and
public goods
• Producers should bear full
social costs of their
operations
• Consumers should pay the
social costs of their
purchases
20-16
Marketing’s Impact on Society as a Whole
Too Few Social Goods
Marketing Impact on people - Gihan aboueleish

16. Complaint:
Marketing and
advertising creates
cultural pollution
Response:
Marketing and advertising
are planned to reach only
a target audience, and
advertising makes radio
and television free to
users and helps to keep
the cost of newspapers
and magazines down.
Today’s consumers have
alternatives to avoid
marketing and advertising
from technology.
20-17
Marketing’s Impact on Society as a Whole
Cultural Pollution
Marketing Impact on people - Gihan aboueleish

17. Complaint:
Businesses wield too
much political
power over mass
media, limiting
media to report
independently and
objectively
Response:
American industries do
promote their own
interests, and
regulators are seeking
to balance the
interests of big
businesses against the
public
• Microsoft
• Tobacco
20-18
Marketing’s Impact on Society as a Whole
Too Much Political Power
Marketing Impact on people - Gihan aboueleish

18. Marketing’s Impact on
Other Businesses
• Acquisition of
competitors
• Marketing practices
• Unfair competitive
marketing practices
20-19
Marketing Impact on people - Gihan aboueleish

19. Marketing’s Impact on Other
Businesses
Acquisition of competitors can
sometimes be good for society
when the acquiring company gains
economies of scale that lead to
lower prices
Marketing practices can also bar new
competitors from entering an
industry and can create use
patents, heavy promotional
spending to drive out existing
competitors
Unfair competitive marketing
practices such as setting prices
below cost, threatening to cut off
business with suppliers, or
discouraging the buying of a
competitor’s product can hurt or
destroy other firms
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Marketing Impact on people - Gihan aboueleish

20. Consumerism is the
organized movement of
citizens and government
agencies to improve the
rights and power of
buyers in relation to
sellers
Environmentalism is an
organized movement of
concerned citizens,
businesses, and
government agencies to
protect and improve
people’s living
environment
20-21
Marketing Impact on people - Gihan aboueleish

21. Consumerism
Traditional sellers’ rights include:
• The right to introduce any product
in any size and style, provided it is
not hazardous to personal health
or safety, or if it is, to include
proper warning and controls
• The right to charge any price for
the product, provided no
discrimination exists among similar
kinds or buyers
• The right to spend any amount to
promote the product, provided it
is not defined as unfair
competition
• The right to use any product
message, provided it is not
misleading or dishonest in content
or execution
• The right to use any buying
incentive programs, provided they
are not unfair or misleading
20-22
Marketing Impact on people - Gihan aboueleish

22. Environmentalism
People and organizations
should operate with
more care for the
environment
The marketing system’s goal
should not be to
maximize consumption,
consumer choice, or
satisfaction, but rather
to maximize life quality.
Environmental costs
should be included in
both producer and
consumer decision
making.
20-23
Marketing Impact on people - Gihan aboueleish

23. Environmentalism
Environmental Sustainability
• Pollution prevention
• Product stewardship
• Design for
environment (DFE)
• New environmental
technologies
• Sustainability vision
20-24
Marketing Impact on people - Gihan aboueleish

24. Environmentalism
Environmental Sustainability
Pollution prevention involves not
just cleaning up waste but
also eliminating or minimizing
waste before it is created
Product stewardship involves
minimizing the pollution from
production and all
environmental impact
throughout the full product
life cycle
Design for environment (DFE)
involves thinking ahead to
design products that are
easier to recover, reuse, or
recycle
20-25
Marketing Impact on people - Gihan aboueleish

25. Environmentalism
Environmental Sustainability
New environmental
technologies involve
looking ahead and
planning new technologies
for competitive advantage
Sustainability vision is a guide
to the future that shows
the company that the
company’s products,
process, and policies must
evolve and what is needed
to get there
20-26
Marketing Impact on people - Gihan aboueleish

26. Enlightened Marketing
Enlightened marketing refers
to a company’s marketing
effort supporting the best
long-run performance of
the marketing system and
consists of five principles:
• Consumer-oriented
marketing
• Customer-value
marketing
• Innovative marketing
• Sense-of-mission
marketing
• Societal marketing
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Marketing Impact on people - Gihan aboueleish

27. Enlightened Marketing
Consumer-oriented marketing means
that a company should view and
organize its marketing activities
from the consumer’s perspective
Customer-value marketing means that
the company should put most of its
resources into customer-value-
building marketing investments—
long-term customer loyalty and
relationships—by continually
improving the value consumers
receive from the firm’s market
offerings
Innovative marketing requires the
company to continually seek real
product and marketing
improvements
20-28
Marketing Impact on people - Gihan aboueleish

28. Enlightened Marketing
Sense-of-mission marketing
means the company should
define its mission in broad
social terms rather than
narrow product terms
Societal marketing means the
company makes marketing
decisions by considering
consumers’ wants and
interests, the company’s
requirements, and society’s
long-run interests
• Views societal problems as
opportunities
• Designs pleasing and
beneficial products20-29
Marketing Impact on people - Gihan aboueleish

29. Enlightened Marketing
Deficient products have
neither immediate
appeal nor long-term
benefits
• Bad-tasting and
ineffective medicine
Pleasing products have high
immediate satisfaction
but may hurt consumers
in the long run
• Cigarettes and junk food
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Marketing Impact on people - Gihan aboueleish

30. Enlightened Marketing
Salutary products have low
appeal but may benefit
consumers in the long
run
• Seat belts and air bags
Desirable products give both
immediate satisfaction
and high long-term
benefits
• Tasty and nutritious
breakfast food
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Marketing Impact on people - Gihan aboueleish

31. Marketing Ethics
Corporate marketing ethics
are broad guidelines that
everyone in the
organization must follow
that cover distributor
relations, advertising
standards, customer
service, pricing, product
development, and
general ethical standards
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Marketing Impact on people - Gihan aboueleish

32. Marketing Ethics
Philosophies
Issues are decided by the
free market and legal
system
Responsibility is not on the
system but in the
hands of the individual
company and
managers 20-33
Marketing Impact on people - Gihan aboueleish

33. Gihan Aboueleish
Marketing Impact on people - Gihan aboueleish