The Dove Campaign for Real Beauty - Pearson

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Chapter 2 Sustainable marketing: marketing ethics and social responsibilityby determining the needs and wants of a target group of customers and fulfilling those needs andwants more effectively and efficiently than the competition. The focus is on what customers wantnow. Try to foist upon them what they do not want and they will buy elsewhere. That is why carsare getting larger and more powerful, why washing detergents still contain phosphates and why manybreakfast meals contain more sugar or fat than is good for us. Marketers succeed by finding aneed and fulfilling it. Sustainable marketing projects our focus on the long-run welfare of society.Shoddy or defective goodsThe first time dimension of sustainable marketing examines the welfare of customers now and inthe future. This dimension has escalating levels of concern. The first is the provision of shoddygoods or defective goods.This customer really did not want holes but needed them to fix a coat hook. He bought theappropriate-looking coat hooks from Focus, a DIY chain, and these came with screws forfixing. If they looked good, his aim was to fit out the whole corridor with these nifty hooks. Beinghandy, the customer recognised that it would be better to drill holes for the screws before fixingthem. This he did, but when trying to fix the first screw it sheared, leaving an ugly bit of metalin a hole. He remeasured and tried a second screw. That also sheared, leaving a second uglyhole . . .The customer had fulfilled his immediate need when buying the coat hooks, but ended up veryannoyed. Focus had also fulfilled their immediate need by buying the coat hooks, as had themaker of the coat hooks in buying appropriately sized screws. At the same time, all lost becauseof the shoddy little component. For Focus, the defective goods had to be refunded, the follow-uporder never came and the customer talked to others.The marketing of shoddy ineffective goods is not sustainable because customers are likely tofind out, stop buying and pass on information to their friends. Many companies make a living byknowingly fulfilling customer’s immediate needs by mis-selling or selling shoddy goods. Probablythe extreme case of this is the sale of bootlegged drugs that are, at their best, only theft but, attheir worst, lethal. Bootlegging of music or books may seem a relatively harmless crime, butconsider the long-run impact: what is the chance of a music industry or literature developing ina country where any creative output is immediately stolen?Any company making anything can discover that the product is either defective or dangerous.3M phased out products containing PFOS when they discovered the potential damage of theproduct without any legal action forcing them to do so. This contrasts with denial that sometimesoccurs when dangers are uncovered.Ford were aware of design flaws in their 1970s Ford Pinto but allegedly decided it would becheaper to pay off possible lawsuits for resulting deaths than to change the car’s design. Amagazine obtained the cost-benefit analysis that it said Ford had used to compare the cost of an$11 (€7) repair against the cost of paying off potential lawsuits. Ford’s reputation was hugelydamaged by this disclosure as they were in the dispute with Firestone decades later over theFord Explorer accidents. 45109
Part 1 Marketing nowThe sustainable marketing concept suggests that making defective goods, either knowingly orunknowingly, defies the basic marketing principle of customer care.Intrinsically harmful goodsSome products, such as red wine, are harmful to customers if consumed to excess. Others, suchas cigarettes, are harmful in any quantity. Yet others, such as asbestos, are harmful if ingestedaccidentally. How do products that kill those who consume them square with the marketingconcept? Cigarettes certainly fulfil the needs and wants of those addicted to them, but is astrategy that depends upon killing customers by making them addicts sustainable? If you cankeep the danger from the public, as big tobacco tried, then sales continue. But this form ofdenial, like that of Ford with the Pinto, had dire consequences once the cover-up was exposed.Cigarette smoking is declining, helped by the product being banned in public places. Evensmokers agree with smoking being banned in the workplace. 46One sustainable marketing strategy pursued by tobacco companies is to diversify away fromtheir cigarette base. With its Marlboro brand, Philip Morris is the world’s largest tobacco producer,but it has also diversified away from that base to become Altria – a conglomerate that has amongits assets Kraft, the foods and beverage giant, and Miller, America’s second largest brewer.In the eye of the storm over increased obesity, McDonald’s has responded with asustainable ‘Plan to Win’ strategy of diversifying from hamburgers into salads, sandwichesand fruit, which has continued to pay off. Aimed at broadening McDonald’s appeal to healthconsciouscustomers, the campaign helped sales increase 11 per cent and profits jump 22 percent with European results being particularly strong. Also, after a seven-year search for an oilnot containing dangerous trans fats without compromising the taste of its French fries,McDonald’s is phasing out the traditional artery-clogging fats from its menu. 47Socially harmful goodsExternality—The effect ofa purchase by one partyon others who do nothave a choice and whoseinterests are not takeninto account.A driver of a large sports-utility vehicle (SUV) walked away from a crash with a small carwhose occupant was killed. In response, the driver went out and bought an even larger SUVbased on the thesis that they are safer. In reality roll-over crashes accounted for 3 per cent ofcar accidents in America but 32 per cent of deaths. Occupants of SUVs are three times morelikely to die from their vehicle rolling over than are the occupants of saloon cars.Similar consumption behaviour is displayed by drivers installing ‘bull bars’ on the front oftheir cars. Why? Few drivers encounter large wild animals on their school run or in theirsupermarket car park. Why do customers install them? Partly as a fashion accessory and partlybecause it protects their car in a bump or scrape. Unfortunately, these fashion items do have alarge social cost. Experimental studies suggest that the collision effect on pedestrians andcyclists of adding bull bars is similar to doubling the actual speed of the vehicle. That trades offagainst 2 to 3 per cent more protection to the vehicle that the accessories provide. 48In these cases the good bestows a fictional or marginal benefit to the buyer while imposing costson others. These can be called third-person costs. This is a case of a negative externality.110
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