Market Sustainability and Ethics

Learning Objectives
Define sustainable marketing and

discuss its importance.
Identify the major social criticisms of
marketing.
Define consumerism and
environmentalism and explain how
they affect marketing strategies.
Copyright 2015 Pearson Education, Inc.
16 - 2
Learning Objectives
Describe the principles of

sustainable marketing.
Explain the role of ethics in
marketing.
16 - 3
First Stop: Sustainability

at Unilever
Goal - Accomplishing a broader social
and environmental mission to improve
stagnant sales and profits
Sustainable Living Plan
Spans the entire value chain
Fuels innovation, resulting in new products
and new consumer benefits
Five Levers for Change - Inspires people

to adopt specific sustainable behaviors
16 - 4
Figure 16.1 - Sustainable

Marketing
16 - 5
Social Criticisms of
Marketing
16 - 6
Marketings Impact on
Individual Consumers
High prices
Deceptive practices
High-pressure selling
Shoddy, harmful, or unsafe products
Planned and perceived obsolescence
Poor service to disadvantaged
consumers
16 - 7
Society as a Whole
16 - 8
Other Businesses
Acquisitions of
competitors
Marketing
practices that
create barriers to
entry
Unfair competitive
marketing
practices
16 - 9
Traditional Rights
Sellers rights
Buyers rights
To introduce any product in

any size and style with
proper warnings and
controls, if necessary
To buy a product that is

offered for sale
To charge any price for the

product without any
discrimination
To expect the product to be

safe
To spend any amount to

promote the product if
competing fairly
To expect the product to

perform as claimed
To use any product message

that is not misleading or
dishonest
To use buying incentive
16 - 10
Proposed Consumer Rights

To be well informed
To be protected against questionable
products and marketing practices
To influence products and marketing
practices to improve quality of life
To consume in a way to preserve the
world for future generations of
consumers
16 - 11
Environmentalism
Protects and improves peoples current
and future living environment
Concerned with:
Damage to the ecosystem
Loss of recreational areas
Increase in health problems
Environmental sustainability:
Generating profits while helping protect
the environment
16 - 12
Figure 16.2 - The

Environmental
Sustainability Portfolio
Source: Stuart L. Hart, Innovation, Creative Destruction, and Sustainability, Research Technology Management, SeptemberOctober 2005, pp. 2127.
16 - 13
Major Marketing Decision Areas

That May Be Called into Question
under the Law
Decision areas
Legal issues
Selling decisions
Bribing
Stealing trade secrets
Disparaging customers
Misrepresenting
Disclosure of customer rights
Unfair discrimination
Advertising
decisions
False advertising
Deceptive advertising
Bait-and-switch advertising
Promotional allowances and
services
16 - 14

under the Law
Decision areas
Legal issues
Channel decisions
Exclusive dealing
Exclusive territorial
distributorship
Tying agreements
Dealers rights
Competitive relations
decisions
Anticompetitive acquisition
Barriers to entry
Predatory competition
Product decisions
Product additions and deletions

Patent protection
Product quality and safety
Product warranty
16 - 15

under the Law
Decision areas
Legal issues
Packaging decisions
Fair packaging and labeling

Excessive cost
Scarce resources
Pollution
Price decisions
Price fixing
Predatory pricing
Price discrimination
Minimum pricing
Price increases
Deceptive pricing
16 - 16
Sustainable Marketing
Principles
16 - 17
Sustainable Marketing
Principles
16 - 18
Figure 16.4 - Societal

Classification of Products
16 - 19
Marketing Ethics
Corporate marketing ethics policies should
be developed by firms as guidelines for
handling various issues and dilemmas.
Distributor relations
Advertising standards
Customer service
Pricing
Product development
General ethical standards
16 - 20
Marketing Ethics
Principles are needed to guide companies
and marketing managers on issues of
ethics and social responsibility.
The free market and the legal system should
decide such issues.
Responsibility is in the hands of individual
companies and managers.
Addressing ethics helps build strong

customer relationships based on honesty
and trust.
16 - 21
Ethical Codes Suggested by

American Marketing
Association
Do no harm
Foster trust in the marketing
system
Embrace ethical values
16 - 22
The Sustainable Company

Sustainable companies create value
for customers through socially,
environmentally, and ethically
responsible actions.
Sustainable marketing provides the
context in which companies can
build profitable customer
relationships.
Learning Objectives
Define sustainable marketing and

discuss its importance.
Identify the major social criticisms of
marketing.
Define consumerism and
environmentalism and explain how
they affect marketing strategies.
16 - 24
Learning Objectives
Describe the principles of

sustainable marketing.
Explain the role of ethics in
marketing.
16 - 25
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What are some of the major social criticisms of marketing?

What are some of the major social criticisms of marketing?

What are some principles of sustainable marketing?

What are some principles of sustainable marketing?

Learning Objectives

Define sustainable marketing and

Copyright 2015 Pearson Education, Inc.

Describe the principles of

Copyright 2015 Pearson Education, Inc.

First Stop: Sustainability

Five Levers for Change - Inspires people

Figure 16.1 - Sustainable

Copyright 2015 Pearson Education, Inc.

Copyright 2015 Pearson Education, Inc.

Copyright 2015 Pearson Education, Inc.

To introduce any product in

To buy a product that is

To charge any price for the

To expect the product to be

To spend any amount to

To expect the product to

To use any product message

Proposed Consumer Rights

Figure 16.2 - The

Copyright 2015 Pearson Education, Inc.

Major Marketing Decision Areas

Copyright 2015 Pearson Education, Inc.

Major Marketing Decision Areas

Product additions and deletions

Copyright 2015 Pearson Education, Inc.

Major Marketing Decision Areas

Fair packaging and labeling

Copyright 2015 Pearson Education, Inc.

Copyright 2015 Pearson Education, Inc.

Copyright 2015 Pearson Education, Inc.

Figure 16.4 - Societal

Copyright 2015 Pearson Education, Inc.

Copyright 2015 Pearson Education, Inc.

Addressing ethics helps build strong

Ethical Codes Suggested by

Copyright 2015 Pearson Education, Inc.

The Sustainable Company

Define sustainable marketing and

Copyright 2015 Pearson Education, Inc.

Describe the principles of

Copyright 2015 Pearson Education, Inc.

All rights reserved. No part of this publication may be reproduced, stored in a

Copyright 2015 Pearson Education, Inc.

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