CHAPTER TWENTY-TWO

Ethical Marketing in a
Consumer-Oriented
World: Appraisal and
Challenges

For use only with

Perreault/Cannon/McCarthy
or Perreault/McCarthy texts.
2008 McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin

www.mhhe.com/fourps

When we finish this lecture you should

1.
2.
3.
4.

Understand why marketing must be evaluated

differently at the managerial (micro) and
macro levels.
Understand why the text argues that
marketing by individual firms often costs too
much.
Understand why the text argues that macromarketing does not cost too much.
Know some of the challenges marketers face
as they develop ethical marketing strategies
that serve consumers needs.

Ethical Marketing in a Consumer-Oriented World

(Exhibit 22-1)

Marketings Impact on Society:

Micro and Macro Views

Evaluating marketing

Challenges facing marketers

How Should Marketers Be Evaluated?

Can Consumer Satisfaction Be Measured?

Depends
Depends On
On
Individual
Individual
Aspirations
Aspirations

AA C
C SS II

Key
Key
Issues
Issues
Many Measures
for MicroMarketing

Highly
Highly Personal
Personal

Micro-Marketing Often Does Cost Too Much

Lack
Lack of
of
Interest
Interest in
in
Customers
Customers
Sources
Sources of
of
Marketing
Marketing
Inefficiency
Inefficiency

Improper
Improper
Blending
Blending of
of
the
the 4Ps
4Ps
Lack
Lack of
of
Understanding
Understanding
of
of the
the
Environment
Environment

Macro-Marketing Does Not Cost Too Much

Interactive Exercise: Does Marketing Cost Too

Much?

2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Other Criticisms of Macro-Marketing

Advertising
Advertising Wastes
Wastes
Resources
Resources
Consumers
Consumers are
are Too
Too
Easily
Easily Controlled
Controlled

Consumers
Consumers
Consumers
Are
Are
Not
Are Not
Not
Puppets
Puppets
Puppets

Needs
Needs and
and
Wants
Wants
Change
Change

Does Marketing Make People Materialistic?

Does
Does Marketing:
Marketing:

Create
Create
Values?
Values?

OR

Appeal
Appeal to
to
Existing
Existing
Values?
Values?

Marketing Reflects Our Own Values

Products
Products Improve
Improve
Quality
Quality of
of Life
Life
Not
Not All
All Needs
Needs Are
Are Met
Met
Macro-Marketing
Macro-Marketing Can
Can
Be
Be More
More Difficult
Difficult
Macro-Marketing
Macro-Marketing Cant
Cant
Eliminate
Eliminate Social
Social Problems
Problems

Elevating the Wrong Values?

2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Checking your knowledge

The Department of Motor Vehicles (DMV) in a large U.S. state decided to
conduct a survey to determine the level of satisfaction with its services among
a random sample of consumers. The survey cost $25,000, and the results were
pretty positivepeople in general seemed reasonably satisfied with DMVs
services. As the agencys managers were busy congratulating themselves, one
manager remarked, So much for how people feel about us now. Well have to
work even harder just to maintain the current level of customer satisfaction
when we do the survey next year. What would best explain this managers
observation?
A.
B.
C.
D.
E.

Different people might be surveyed next year.

Consumer satisfaction cant be accurately measured.
People dont think of themselves as consumers when they deal with
government agencies.
Consumer expectations change over time and often increase.
The survey was probably biased this year because of poor sampling.

Challenges Facing Marketers (Exhibit 22-1)

Communication
Communication
Technologies
Technologies

Channels
Channelsand
and
Logistics
Logistics

Role
Roleof
of
Computerization
Computerization

Sales
Sales Promotion
Promotion

Marketing
Marketing
Research
Research
Demographic
Demographic
Patterns
Patterns

Changes/Trends
Changes/Trends
Affecting
Affecting
Marketing
Marketing Strategy
Strategy
Planning
Planning

Personal
PersonalSelling
Selling
Mass
MassSelling
Selling

Business
Business&&
Organizational
Organizational
Customers
Customers

Pricing
Pricing

Product
ProductArea
Area

International
International
Marketing
Marketing

Technology, Globalism, and Social Responsibility

We
We Need
Need To
To Welcome
Welcome
International
International Competition
Competition

We
We Need
Need To
To Use
Use
Technology
Technology Wisely
Wisely

We
We Need
Need More
More
Social
Social Responsibility
Responsibility

The Environment Is Everyones Need

We shouldnt have to
choose. We
voluntarily introduced
cleaner burning lowsulfur fuels six years
before E.P.A.
mandates. These
fuels help reduce
ozone pollution and
are now available in
over 40 U.S. cities.

Legal and Ethical Concerns

Consumer
Consumer
Privacy
Privacy

Enactment
Enactment and
and
Enforcement
Enforcement

Key
Key
Issues
Issues
Legal vs.
Ethical

Impact
Impact on
on Top
Top
Managers
Managers

Responsibilities of Consumers and Marketers

Socially
Socially Responsible
Responsible
Consumers
Consumers

How
How Far
Far Does
Does the
the
Marketing
Marketing Concept
Concept Go?
Go?

Consumer-Citizens
Consumer-Citizens Should
Should
Vote
Vote on
on Changes
Changes

Checking your knowledge

Which of the following statements indicates that a marketing
manager is about to make a serious mistake?
A. Competitors? I dont worry about them. If we do
our job, well be OK regardless of what anyone
else does.
B. I never thought Id be leading our company into
the international market, but there are simply too
many opportunities there to ignore.
C. I dont write the paychecks for my customer service
staffthe customers do.
D. Weve learned that good selling is really all about
helping consumers solve their problems.
E. I welcome consumer complaints, because they let us
know what we need to do to improve our service.

Checking your knowledge

Which of the following marketing trends would you LEAST expect to see
in the future?

A.
B.
C.
D.

Increased use of Web logs (blogs) by marketers.

More emphasis on placement of products in
movies and on TV shows as a means of promotion.
More Spanish-language advertising in the U.S.
Increased share of market for online retailing compared to

E.

traditional retailing.
Less attention to distribution customer service.

You now

1.
2.
3.
4.

Understand why marketing must be evaluated

differently at the managerial (micro) and
macro levels.
Understand why the text argues that
marketing by individual firms often costs too
much.
Understand why the text argues that macromarketing does not cost too much.
Know some of the challenges marketers face
as they develop ethical marketing strategies
that serve consumers needs.