The Dove Campaign for Real Beauty - Pearson

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Chapter 2 Sustainable marketing: marketing ethics and social responsibilityPublic actions to regulate marketingCitizen concerns about marketing practices will usually lead to public attention and legislativeproposals. New bills will be debated – many will be defeated, others will be modified and a fewwill become workable laws. Many laws affect marketing practices. As we will discuss in Chapter 3,companies operating within the EU are bound by several layers of laws and regulatory bodies.National laws are designed to regulate local marketing and business practices. In addition, businesseshave to comply with EU competition and consumer laws enforced by the EuropeanCommission to ensure fair competition and to protect consumer rights. The task is to translatethese laws into the language that marketing executives understand as they make decisions aboutcompetitive relations, products, price, promotion and channels of distribution. Figure 2.2illustrates the principal legal issues facing marketing management.‘Ethical consumption is perhaps the biggest movement in branding today,’ according to GfKNOP market research group. Its share of individual markets is relatively tiny although itsinfluence is seen behind the sales of Toyota’s hybrid, L’Oréal’s €1bn acquisition of troubledBody Shop and the huge growth of organic food and drink sales. But the problem, GfK NOPconcluded from their five-nation study, is that consumers are confused. The public is not surewhat an ethical brand actually is. There are so many angles to being ethical. In food labelling, isit locally grown, organic or subject to fair trade agreements? In beauty, is it free from animaltesting or produced from ‘natural’ ingredients? Or, maybe products that are fuel-efficient,recycled, produced in unionised work conditions or not linked to the tobacco or arms industries?Selling decisionsBribing?Stealing trade secrets?Disparaging customers?Misrepresenting?Disclosure of customerrights?Unfair discrimination?Advertising decisionsFalse advertising?Deceptive advertising?Bait-and-switch advertising?Promotional allowances andservices?Channel decisionsExclusive dealing?Exclusive territorialdistributorship?Tying agreements?Dealer’s rights?Product decisionsProduct additions anddeletions?Patent protection?Product quality andsafety?Product warranty?Packaging decisionsFair packaging andlabelling?Excessive cost?Scarce resources?Pollution?Price decisionsPrice fixing?Predatory pricing?Price discrimination?Minimum pricing?Price increases?Deceptive pricing?Figure 2.2 Legal issues facingmarketing managementCompetitive relations decisionsAnticompetitive acquisition?Barriers to entry?Predatory competition?95
www.pearson.co.uk/kotlerPart 1 Marketing now●●●The study of 5,000 consumers found international differences:Germans felt that ‘business ethics had worsened’.The more optimistic British thought that supporting ethical brands could help makecompanies more accountable but were wary that ethical brands were for ‘people with money’.French were more likely than US respondents to prioritise environmental issues.● Spaniards were enthusiastic about ethical food and beauty, but scoffed hype. 37“Consumers are confused. The public is not sure what an ethical brand actually is.Having discussed citizen and public actions to regulate marketing, we will next examine thebusiness actions towards socially responsible marketing that lead to different philosophies ofenlightened marketing and the fostering of marketing ethics.“KEY CONCEPTBusiness actions towards sociallyresponsible marketingEnlightened marketing—A marketing philosophyholding that a company’smarketing should supportthe best long-run performanceof the marketingsystem; its five principlesare consumer-orientedmarketing, innovativemarketing, valuemarketing, sense-ofmissionmarketing andsocietal marketing.Consumer-orientedmarketing—The philosophyof enlightenedmarketing that holds thatthe company should viewand organise itsmarketing activities fromthe consumers’ point ofview.At first, many companies opposed consumerism and environmentalism. They thought the criticismswere either unfair or unimportant. But, by now, most companies have grown to embracethe new consumer rights, at least in principle. They might oppose certain pieces of legislationas inappropriate ways to solve specific consumer problems, but they recognise the consumer’sright to information and protection. Many of these companies have responded positively toconsumerism and environmentalism in order to create greater customer value and to strengthencustomer relationships.Enlightened marketingThe philosophy of enlightened marketing holds that a company’s marketing should support thebest long-run performance of the marketing system. Enlightened marketing consists of fiveprinciples: consumer-oriented marketing, customer-value marketing, innovative marketing,sense-of-mission marketing and societal marketing.Consumer-oriented marketingConsumer-oriented marketing means that the company views and organises its marketing activitiesfrom the consumer’s point of view. It works hard to sense, serve and satisfy the needs of adefined group of customers. Good marketing companies tend to have one thing in common – anall-consuming passion for delivering superior value to carefully chosen customers. Only by seeing theworld through its customers’ eyes can the company build lasting and profitable customer relationships.Value marketingAccording to the principle of customer-value marketing, the company should put most of itsresources into value-building marketing investments. Many things marketers do – one-shot salespromotions, minor packaging changes, direct-response advertising – may raise sales in the shortrun, but add less value than would actual improvements in the product’s quality, features or96
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The Dove Campaign for Real Beauty - Pearson

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