Professional Documents
Culture Documents
Chapter 16
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Sustainable Marketing
Socially and environmentally responsible marketing that:
Meets the present needs of consumers and businesses Preserves or enhances the ability of future generations to meet their needs
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Sustainable Marketing
McDonalds Plan to Win addresses issues related to:
Food-supply sustainability Sustainable packaging Reuse and recycling Responsible store designs
Plan to Win strategy has both created sustainable value for customers and positioned the company for a profitable future
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High Prices
Three factors are cited as leading to high prices:
High costs of distribution High advertising and promotion costs Excessive markups
Heavily promoted brands cost much more than private labels virtually identical nonbranded or store-branded product
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Deceptive Practices
Deceptive pricing - Falsely advertising factory or wholesale prices or large reductions from a phony high retail list price Deceptive promotion - Misrepresenting a products features or performance, or luring consumers to store for out-of-stock item Deceptive packaging - Exaggerating package contents, using misleading labeling, etc.
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Deceptive Practices
Deceptive practices have led to legislation and other protective consumer actions
FTC governs deceptive practices Use of puffery is legal, but may harm consumers in subtle ways Deceptive practices are not sustainable as they harm a firms business in the long-run
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Planned Obsolescence
Causing products to become obsolete before they actually need to be replaced
Using materials and components that will break, wear, rust, or rot sooner than they should
Holding back functional features, and introducing them later to make older models obsolete
Perceived obsolescence - continually changing consumer concepts of acceptable styles to encourage more and earlier buying
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Underserved Consumers
Lack of supermarkets in low income areas, have left many disadvantaged consumers with little or no access to healthy, affordable fresh foods
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Consumerism
An organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers
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Environmentalism
An organized movement of concerned citizens and government agencies to protect and improve peoples living environment
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Environmentalism
Those who subscribe to environmentalism believe that marketing systems goal should be to maximize quality of life
Life quality includes the quantity and quality of consumer goods and services and quality of the environment
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Environmentalism
Is concerned with damage to the ecosystem caused by global warming, resource depletion, toxic and solid wastes, litter, etc. Over the past several decades, such concerns have resulted in federal and state laws and regulations In recent years, however, firms have accepted more responsibility and many have adopted a policy of environmental sustainability
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Environmental sustainability
Management approach that involves developing strategies that both sustain the environment and produce profits for the company
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Coke is researching and testing new bottles made from aluminum, corn, or bioplastics
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Marketing at Work
Sustainability means:
Driving out hidden costs Conserving natural resources Providing sustainable and affordable products so customers can save money and live better
Figure 16.3 - Marketing Decision Areas That May be Called into Question Under the Law
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Consumer-oriented marketing
A principle of sustainable marketing that holds a company should view and organize its marketing activities from the consumers point of view
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Customer-value marketing
A principle of sustainable marketing that holds a company should put most of its resources into customer-value-building marketing investments
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Innovative marketing
A principle of sustainable marketing that requires a company to seek real product and marketing improvements
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Sense-of-Mission Marketing
A principle of sustainable marketing that holds that a company should define its mission in broad social terms rather than narrow product terms
Sense-of-mission marketing has made Pedigree the worlds number one dog food brand
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Marketing at Work
Ben & Jerrys, The Body Shop, Burts Bees, Stonyfield Farms, Patagonia, Timberland, and TOMS Shoes pioneered the concept of valuesled
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Societal marketing
A company makes marketing decisions by considering consumers wants, the companys requirements, consumers long-run interests, and societys long-run interests
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Deficient Products that have neither immediate products appeal nor long-run benefits Pleasing products Salutary products
Products that give high immediate satisfaction but may hurt consumers in the long run Products that have low immediate appeal but may benefit consumers in the long run
Desirable Products that give both high immediate products satisfaction and high long-run benefits
Desirable Products
PepsiCo has hired a team of scientists to help it develop a larger portfolio of healthy product options, such as the Trop50 brand
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International marketers face the challenge of varying business practices and standards across countries
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